In this paper, we present a systematic study of process changes for increased power production in 1-20 MW, combined heat and power (CHP) plants. The changes are simulated, and their economic feasibility evaluated by using existing small scale CHP case plants. Increasing power production in decentralised CHP plants that operate according to a certain heat demand could reduce the fuel consumption and CO2 emissions per power unit produced and improve the feasibility of CHP plant investments. The CHP plant process changes were simulated under design and off design conditions and an analysis of power and heat production, investment costs and CO2 emissions was performed over the whole annual heat demand. The results show that using biomass fuels, there are profitable possibilities to increase the current power to heat ratios, 0.23-0.48, of the small scale CHP plants up to 0.26-0.56, depending on the size of the plant. The profitable changes were a two stage district heat exchanger and the addition of a steam reheater and a feed water preheater. If natural gas is used as an additional fuel, the power to heat ratio may be increased up to 0.35-0.65 by integrating a gas engine into the process. If the CO2 savings from the changes are also taken into account, the economic feasibility of the changes increases. The results of this work offer useful performance simulation and investment cost knowledge for the development of more efficient and economically feasible small scale CHP processes. (c) 2006 Elsevier Ltd. All rights reserved.